Bengaluru Man Loses ₹2.51 Crore in Fake Initial Public Offering (IPO) Scam

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Bengaluru Police Investigate Extensive Cyber Fraud Involving Elderly Victim

The Bengaluru East Division Cyber Crime Police are investigating a significant case of cyber fraud, where an 80-year-old man, Vaidyanathan, lost over ₹2.51 crore to scammers posing as bank officials.

Scam Details

The scam began in January 2026 when Vaidyanathan responded to an advertisement promoting stock tips and IPO block trading, claiming affiliation with a private bank and its securities wing.
He submitted personal details through a provided link, after which he was contacted by several individuals operating via multiple phone numbers.
The scammers persuaded Vaidyanathan to invest through two mobile apps, KOTMOT and KOTPRO, available on the Google Play Store. These apps displayed his investment of ₹2.51 crore nearly doubling to ₹5 crore.
However, the fraudsters pressured him to deposit an additional ₹3 crore to secure an alleged IPO allotment, which was later found to be entirely fictitious.

Preliminary Investigations

Preliminary investigations revealed that Vaidyanathan made 23 transactions totaling over ₹2.5 crore, all routed to multiple bank accounts controlled by the fraudsters.

According to the police, “We have identified some suspicious transactions and are working to trace the money trail and apprehend the culprits.”

Cyber Experts Warn of Social Engineering Vulnerabilities

Cybercrime experts warn that such scams exploit social engineering and digital identity vulnerabilities, often targeting elderly individuals.

They emphasize the importance of strong financial and cyber safeguards to prevent such incidents.

Officials Urge Public to Be Cautious Online

Officials urge the public to rely on verified platforms and official channels for digital investments, while the investigation continues to apprehend the culprits and recover the funds defrauded from Vaidyanathan.